Malaysia Glycerine Prices Are Consistently Rising Due To High Demand Amid Constraint Supply
- 19-Jan-2022 3:45 PM
- Journalist: Harold Finch
Since the start of January 2022, the Malaysian Glycerine market witnessed immense pressure from both supply and demand outlook due to rising inquiries from the domestic and overseas market players. Whereas, the starting of New year is not so fortunate for the Palm Oil market, as the flood hits the seven states of Malaysia after the unusual rainfall that started in mid-December raised concerns regarding the destruction of harvested palm oil crops. In response, the palm oil futures soared by 4% in the first week of January, besides that it also presented uncertainty regarding the upcoming supply glut for the production of Glycerine in Malaysia.
Whereas, the resurgence of the omicron variant of COVID-19 in major economies like China and India uplifted the demand from Pharmaceutical industries for the end-use applications of hand sanitation liquids. The market participants from China are most active and competitive regarding the secure large volumes of Glycerine ahead of the upcoming spring festival and Winter Olympics in China. In addition, there is strong speculation about the strict implementation of environmental protection policy in China ahead of the Winter Olympics, which induced numerous concerns regarding the supply glut in the Chinese domestic market amidst the persistently soaring COVID cases. It led to the early January lockdown in China’s major and busiest container shipping ports cities, which further coupled with the delays at US ports spell more trouble for the global supply chain in early 2022.
As per ChemAnalyst, the Malaysian Glycerine offers 99.5% USP witnessed a growth of 222.40% on a year-on-year basis compared to January 2021. This showcasing the due to COVID 19 and demand outstripping the supply outlook forced the producers to raise the Glycerine quotations. Whereas, the current disruption in palm harvest by the floods, several analysts predicted that the impact will likely mark its presence till the start of the second quarter of 2022. Therefore, it has been predicted that the current sentiments are likely to prevail and prices for Glycerine are likely to remain buoyed in the Malaysian domestic market.